Vermont's rental shortage is most acute in Chittenden County, where small multifamily rarely sits on the market. In the ski towns, a single house can cross $1M. A large bridge loan helps an investor move first in either market.
In short: LendingStreet funds residential investor bridge loans from $1M to $5M+ on 1-8 unit Vermont property, with rates from 7.99%, interest-only payments and closings in as little as 10 days on a complete file. Typical collateral is Burlington-area plexes and small multifamily and homes in Stowe, Killington and Manchester. Larger balances usually need a full valuation, and exits are a sale or a DSCR or jumbo DSCR refinance.
Burlington-area multifamily often sells off-market to buyers who can close fast. A bridge loan buys the property, then funds time for repairs, inspections and lease renewals.
The program itself is the same one we use for smaller Vermont deals: $150,000 to $5M+, rates from 7.99%, interest-only payments and short terms. What changes above $1M is the review. Larger balances are looked at case by case, and they usually need a full valuation rather than a quick desk review.
Speed is still the reason investors use it. When title, valuation and entity documents are ready, closings can happen in as little as 10 days.
Burlington, South Burlington, Winooski, Essex and Colchester hold most of the state's rental demand, driven by the University of Vermont, the regional medical center and a tight housing supply. Older triplexes and fourplexes in Burlington's Old North End and Winooski are common bridge collateral.
Montpelier, Barre, Rutland and Brattleboro have lower prices and older multifamily. Ski and resort towns (Stowe, Killington, Ludlow, Manchester, Woodstock, Dover near Mount Snow) have high-value homes where one property can exceed $1M.
Vermont's property transfer tax is paid by the buyer, and investment property is generally taxed at 1.25% of the price, plus a clean water surcharge on most purchases. On a $2M package that is over $25,000, so put it in the closing budget early.
Vermont's education property tax has two rates: a homestead rate for a primary residence and a nonhomestead rate for everything else, including rentals and second homes. Budget on the nonhomestead rate in your town, which is often noticeably higher. Town grand lists are reappraised from time to time, and a reappraisal after a period of rising prices can lift the bill on an older building.
This example is illustrative and not a quote. An investor buys two fourplexes in the Old North End and a triplex in Winooski for $2,150,000, 11 units in all. The property transfer tax is a major closing cost, and two units need updates to pass the city's housing inspection.
Leverage here is assumed at 70% of the purchase price, a $1,505,000 bridge loan. With interest-only payments estimated at about $12,542 a month, the 9-month plan carries about $112,875 in interest.
When the bridge matures, the value is $2,250,000. Refinancing at 70% LTV gives a $1,575,000 DSCR loan. Estimated principal and interest is about $10,744; with taxes of $4,130, insurance of $900 and $0 of other costs, the monthly payment is about $15,774. Rent of $19,800 puts DSCR at about 1.26x.
With taxes at the nonhomestead rate and all 11 units leased, the package clears 1.0x. The $1,575,000 refinance repays the $1,505,000 bridge with about $70,000 left over.
| Item | Amount |
|---|---|
| Purchase price | $2,150,000 |
| Bridge loan (70% of price) | $1,505,000 |
| Estimated monthly interest-only payment | $12,542 |
| Interest carry over 9 months | $112,875 |
| Value at refinance | $2,250,000 |
| DSCR refinance at 70% LTV | $1,575,000 |
| Estimated principal and interest | $10,744 |
| Taxes, insurance and other monthly costs | $5,030 |
| Total monthly payment | $15,774 |
| Monthly rent | $19,800 |
| DSCR | 1.26x |
Flooding in July 2023 and again in 2024 damaged homes in Montpelier, Barre, Ludlow and other river towns. Check flood maps, elevation and damage history, and price flood insurance before committing.
Burlington runs a rental registry with minimum housing inspections and regulates short-term rentals, with tighter limits on units that are not owner-occupied. Other towns have their own STR registration and zoning rules, and some resort towns now require registration and safety inspections before a unit can be rented by the night.
Chittenden County rents are high relative to the rest of the state, and renovated Burlington and Winooski plexes usually clear a 1.0x DSCR on combined rent even with nonhomestead taxes. The DSCR refinance qualifies on rent, with no W-2s or tax returns.
Ski-town homes are harder to support on long-term leases. Investors often plan a sale, a lower-leverage jumbo DSCR loan or an STR DSCR loan where town rules allow nightly rentals.
Our investor loans are business-purpose loans on non-owner-occupied property, made to LLCs and other entities as well as individuals. A short summary of the deal, plus the items below, is enough to get a quote started. Use the form below or call (877) 298-1001.
On a multi-property Vermont request, a simple spreadsheet with each address, unit count, rent, taxes and insurance saves days. The team can then show how the bridge and the exit loan size at two or three leverage levels, so you can pick the structure before you sign.
The buyer. Investment property is generally taxed at 1.25%, plus a clean water surcharge. Confirm with your closing attorney.
Vermont's education tax uses a higher nonhomestead rate for rentals and second homes. Budget on that rate.
Burlington runs a rental registry and minimum housing inspections. Plan repairs and timing into your bridge.
Rates start from 7.99%, with interest-only payments. Final pricing on larger balances depends on the properties, leverage and exit plan.
As little as 10 days on a clean, complete file. Multi-property loans and larger balances usually need more time for valuations and title.
Usually, yes. Some smaller bridge programs skip the appraisal, but larger balances generally require a full valuation of each property.
Only where town rules allow nightly rentals. Some STR DSCR programs qualify on projected revenue.
Yes, in river towns. Check flood maps and damage history, and price flood insurance before you buy.
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